Metaplanet Inc. Bolsters Bitcoin Holdings with ¥200 Million Acquisition

• Metaplanet Inc. confirms acquisition of significant Bitcoin holdings on July 1, 2024.
• This follows their earlier announcement of a strategic investment into digital currencies.
• Notable detail: They purchased 20.195 Bitcoins at an average price of 9,903,441 yen each.

Metaplanet Inc. boosts its Bitcoin portfolio with a robust acquisition, aiming to fortify its position in the cryptocurrency market.

Metaplanet’s Strategic Bitcoin Acquisition

Metaplanet Inc., a leading Tokyo-based company listed on the Tokyo Stock Exchange (TSE: 3350), has recently reported a notable acquisition of Bitcoin. This move aligns with their documented strategic objective to delve deeper into the cryptocurrency sector, an ambitious agenda they initially divulged on 24 June 2024. The firm has spent 200 million yen to procure 20.195 Bitcoins, averaging an acquisition cost of 9,903,441 yen per Bitcoin.

Details of the Transaction

On July 1, 2024, Metaplanet disclosed details of their Bitcoin purchase, emphasizing their robust strategy to enhance their digital asset portfolio. Specifically, they acquired 20.195 Bitcoins, initiating the purchase with an investment of 200 million yen. Consequently, their total Bitcoin holdings now amount to 161.2677 Bitcoins, bought at an average price of 10,231,438 yen per Bitcoin.

Funding Through Bond Issuance

In alignment with their cryptocurrency investment plans, Metaplanet’s Board of Directors approved a new issuance of ordinary guaranteed bonds on 24 June 2024. The new bond series aims to raise 1 billion yen, with each bond valued at 50 million yen and offering a 0.5% annual interest rate. This strategic financial maneuver is set to channel additional funds into their Bitcoin acquisition initiative.

Guarantees and Collateral

To secure these bonds, Metaplanet’s top executive, Simon Gerovich, underwrites the issuance by providing a guarantee. Furthermore, the contract establishes a primary mortgage on Hotel Royal Oak Gotanda, owned by their subsidiary Wen Tokyo Inc., as collateral. This strategic move assures potential bondholders of the investment’s security, circumventing the need for a bond administrator due to regulatory compliance.

Market Impact and Financial Projections

Metaplanet anticipates that this bond issuance and subsequent Bitcoin purchase will not substantially influence their consolidated financial results for the fiscal year ending December 2024. However, any significant variations or updates will be communicated promptly to stakeholders. This proactive approach underscores Metaplanet’s commitment to transparency and financial prudence.

Conclusion

In conclusion, Metaplanet Inc.’s strategic Bitcoin acquisition and bond issuance represent a forward-thinking approach to engaging with digital assets. By bolstering their Bitcoin holdings and securing additional funds through bonds, they aim to solidify their position in the evolving cryptocurrency market. Investors and stakeholders will closely monitor these developments as Metaplanet continues to navigate the dynamic financial landscape.